MADRID |Nicosia played with fire for a long time. And Europe has proved again its inability to prevent risky situations and handle them without pulling the trigger.
So long stiff capital control measures are in place the economy will enter into a free-fall. But as soon as they are lifted, the run on accounts might likely lead to a banking collapse.
MADRID | The eurozone is trapped in internal conflicts that prevent the European Central Bank to compensate, as it should, the fluctuations of money demand.
NICOSIA | By Aristos Mihailides | After the failure of the EU’s €10bn Cyprus rescue plan, the German Minister of Finance has questioned the island’s low tax regime. However, a well known journalist argues that following the 1974 Turkish invasion, Nicosia had no option but to offer tax breaks.
By 2017 the two largest Cypriot banks–Bank of Cyprus and Cyprus Popular–face debt repayments of €11 billion or 86 percent of the whole economy’s output.